[EP3.3] [Executable] Sell ETH to USDC

Abstract

This proposal executes a swap of 10,000 ETH into USDC, to ensure ENS DAO has enough to cover operating expenses for 18 - 24 months.

Motivation

The DAO currently keeps almost 100% of its spendable treasury in ETH. While ENS generates protocol revenue in ETH, having so much exposure to a single volatile asset places the DAO in a vulnerable position.

This is a proposal to convert 10,000 ETH into USDC through a Cowswap swap.

10,000 ETH is approximately 25% of the total amount of ETH held by the ENS DAO (wallet.ensdao.eth) and register controller (controller.ens.eth) as of January 18, 2023.

It is hoped that this sale will generate in excess of $13m in USDC. The goal is to ensure that the DAO has enough USDC to cover operations for the next 18 - 24 months.

Specification

1. Call withdraw() on controller.ens.eth (0x283af0b28c62c092c9727f1ee09c02ca627eb7f5)
2. Call deposit() on WETH9 (0xc02aaa39b223fe8d0a0e5c4f27ead9083c756cc2), sending 10,000 ETH
3. Call approve(<milkman>, 10000 ETH) on WETH9 (0xc02aaa39b223fe8d0a0e5c4f27ead9083c756cc2)
4. Call requestSwapExactTokensForTokens(10000 ETH, <WETH9>, <USDC>, wallet.ensdao.eth, <uniswap v3 price checker>, <price checker data>) on milkman (0x11C76AD590ABDFFCD980afEC9ad951B160F02797)

Price checker data is configured to check the swap against the Uniswap v3 pool and limit to 2% slippage. It is generated using the below code:

import { ethers } from "https://cdn.ethers.io/lib/ethers-5.2.esm.min.js";

function getCheckerData(slippage, path, fees) {
  return ethers.utils.defaultAbiCoder.encode(
    ["uint256", "bytes"],
    [
      slippage,
      ethers.utils.defaultAbiCoder.encode(
        ["address[]", "uint24[]"],
        [path, fees],
      ),
    ],
  );
}

const checkerData = getCheckerData(
  200,
  [
    "0xC02aaA39b223FE8D0A0e5C4F27eAD9083C756Cc2",
    "0xA0b86991c6218b36c1d19D4a2e9Eb0cE3606eB48",
  ],
  [5],
);
console.log("checkerData:", checkerData);

Addresses:

• 0xfe89cc7abb2c4183683ab71653c4cdc9b02d44b7 - wallet.ensdao.eth
• 0x283af0b28c62c092c9727f1ee09c02ca627eb7f5 - controller.ens.eth
• 0xc02aaa39b223fe8d0a0e5c4f27ead9083c756cc2 - WETH9
• 0x11C76AD590ABDFFCD980afEC9ad951B160F02797 - milkman
• 0xA0b86991c6218b36c1d19D4a2e9Eb0cE3606eB48 - USDC
• 0x2F965935f93718bB66d53a37a97080785657f0AC - Uniswap v3 slippage checker